Labour poised to regain control in NZ

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New Zealand Prime Minister Helen Clark looked like clinging to
power tonight after her Labour Party finished one seat ahead of the
conservative National Party in a cliffhanger election.

But National leader Don Brash refused to concede defeat and
talked up the possibility of being able to form a government with
centre-right minor parties.

The drama of the tight election count was matched by an aviation
emergency in which a rogue pilot crashed a stolen light plane into
an Auckland bay after he threatened to fly into the city's Sky
Tower.

With 100 per cent of regular votes counted, Labour had won 50
parliamentary seats to National's 49 after finishing one percentage
point ahead in the vote in which neither won a majority of
seats.

They will need at least a 62-seat coalition in the
122-parliament in order to govern.

Minor parties did better than predicted and will determine who
can form a government.

Most party leaders said the special votes still to be counted
could play a crucial part in deciding the next government.

By the end of counting tonight, Labour had 40.7 per cent
compared with 39.6 per cent for National.

New Zealand First had seven seats, the Green Party six, the
Maori Party four, United Future three, ACT two and Progressive
one.

Labour pulled back a large National lead established earlier in
the count.

"There's a Labour-led government in those numbers," Labour
Party

president Mike Williams told Television New Zealand.

Labour's Finance Minister Michael Cullen said it would be at
least two weeks before a new government would be formed.

"Every possible permutation is still in play," Cullen told
National Radio.

In a speech to supporters in Auckland, Brash said: "We can't
claim a victory but I'm certainly not conceding defeat."

"There's a small matter of building a coalition government and
it's not at all clear who will be able to do that," he said.

"My colleagues and I certainly will be working diligently and
constructively over the next few days and weeks in an endeavour to
put together a National-led government."

Greens co-leader Rod Donald said he was confident of a
government being formed involving his party, Labour and
Progressive.

"There will obviously need to be other parties involved," Donald
said.

"There will obviously be a lot of talking over the next couple
of days.

"But at least now Labour is definitely ahead of National that
does lock in United Future and New Zealand First to support Helen
Clark as the next prime minister and we're in there boots and all
of course."

New Zealand First leader Winston Peters, who lost his electorate
seat to National but will remain in the parliament, refused to make
any comment on who will govern.

"It's not known what the outcome of this election is," Peters
said.

"Until I know and my colleagues know, we won't be able to make
any comment in an informed way.

"Only a fool tests the water with both his feet."

Peter Dunne, leader of the centrist United Future, said he would
talk to the largest party first but ruled out supporting a
Labour-Green coalition.

"We will not support a government which has the Greens sitting
around the cabinet table," Dunne said.

"There will be no discussions tonight," he said.

Brash said a Labour-Green-Maori Party government would a "scary
prospect for New Zealand" and would not last."

The one-year-old Maori Party may play an influential role after
winning four of the seven electorates reserved for indigenous Maori
voters